hampton roads transportation accountability … finance...new business 8. next meeting adjournment...

HRTAC Finance Committee │ April 8, 2015 │ Agenda

Hampton Roads Transportation Accountability Commission Finance Committee

Wednesday, April 8, 2015

9:30 AM The Regional Board Room, 723 Woodlake Drive, Chesapeake, Virginia

AGENDA

1. Call to Order 2. Public Comment Period 3. Minutes of the August 19, 2014 HRTAC Finance Committee Meeting

(Attachment 3) Recommended Action: Approval

4. HRTAC Banking Report • Finance Committee Chair • BB&T and Union Bank & Trust

5. FY 2016 Draft Budget (Attachment 5) • Public Hearing – May 13, 2015 proposed date

Recommended Action: For discussion purposes 6. HRTF Monthly Financial Report (Attachment 6)

Recommended Action: For information purposes 7. New Business 8. Next Meeting

Adjournment

HRTAC Finance Committee Meeting Summary Minutes – August 19, 2014 – Page 1 Prepared by K. Grauberger

Hampton Roads Transportation Accountability Commission (HRTAC) Finance Committee

Summary Minutes of the August 19, 2014 Meeting

The Hampton Roads Transportation Accountability Commission (HRTAC) Finance Committee Meeting was called to order at 9:00 a.m. in the Regional Board Room, 723 Woodlake Drive, Chesapeake, Virginia, with the following in attendance: HRTAC Finance Committee Members in Attendance: W. Eugene Hunt Senator L. Louise Lucas* McKinley Price William D. Sessoms Senator Frank Wagner, Chair

HRTPO Interim Executive Director: Camelia Ravanbakht

Other Participants: Dep. Sec. Grindly Johnson Tom Inglima Alan Krasnoff* Jim Spore

* Late Arrival or Early Departure Others Recorded Attending: Tracy Agnew, Robert Brown, Robert Dean, Ross Grogg, Dianna Howard, Jim Keiper, Josh Lazernick, Harry Lester, Eugene Maina, Mike Robinson, Donna Sayegh (Citizens); James Baker, Earl Sorey (CH); Brian DeProfio (HA); Tom Slaughter, Bryan Stilley, Jerri Wilson (NN); Deborah Brown, Bryan Pennington, Jeff Raliski (NO); Sherri Neil (PO); J. Randall Wheeler (PQ); Angie Berik, Julie Dumi, Bob Matthias (VB); Martha McClees (VB Vision); Vince Mastracco (Kaufman & Canoles); Tamaal O’Neil (Daily Press); Chris Collins (Jacobs Engineering); Mark Geduldig-Yatrofsky (Portsmouthcitywatch.org); Amber Randolph (Willcox & Savage); Rob Case, Brian Chenault, Kathlene Grauberger, Danetta Jankosky, Michael Kimbrel, Kendall Miller, Joe Paulus (HRTPO Staff); Melton Boyer, Nancy Collins, Mike Long, Chris Vaigneur (HRPDC Staff) Public Comment Period (limit 3 minutes per individual) Ms. Donna Sayegh, Portsmouth Citizen, addressed the HRTAC Finance Committee regarding the draft budget. (Mayor Krasnoff arrives)

Attachment 3


Mr. Jim Keiper, Chesapeake Citizen, addressed the HRTAC Finance Committee regarding light rail and the Maglev. Ms. Dianna Howard, representing the Hampton Roads Tea Party, the Virginia Beach Tax Payers Alliance, and the Tidewater Libertarian Party, addressed the HRTAC Finance Committee regarding the draft budget. Mr. Robert Brown, Chesapeake Citizen, addressed the HRTAC Finance Committee regarding public comment video submittal. Mr. Robert K. Dean, representing the Tidewater Libertarian Party, addressed the HRTAC Finance Committee regarding the draft budget. (Senator Lucas arrives) Mr. Mark Geduldig-Yatrofsky, representing Portsmouthcitywatch.org, addressed the HRTAC Finance Committee regarding the draft budget. Ms. Brenda Hardison, Chesapeake Citizen, addressed the HRTAC Finance Committee regarding the draft budget. Proposed Draft Budget Chair Frank Wagner stated that Mr. Jim Spore, Virginia Beach City Manager, was asked to prepare an HRTAC draft budget for the HRTAC Finance Committee to review. He noted the draft budget was a collaborative effort which involved several Chief Administrative Officers (CAOs). He indicated the Committee would review the proposed budget and move it forward to the full HRTAC for further discussion. Mr. Jim Spore reported the proposed HRTAC draft budget respects federal code and maximizes efficiency and collaboration between the HRTAC, HRTPO, and HRPDC. He briefed the Committee on the draft budget, including the proposed:

• Governance Structure • HRTAC Staff Structure • Operating Budget • HRTAC Staff Budget • HRTPO Staff Support Budget

Discussion ensued regarding whether the HRTAC should hire its own Executive Director, or whether a single Executive Director should lead the HRTAC, HRPDC, and HRTPO. A question was raised on whether having one Executive Director for all three organizations would result in a reduction in the locality per capita currently going to the HRPDC and HRTPO. Dr. Camelia Ravanbakht, HRTPO Interim Executive Director, replied there were no planned reductions.

Attachment 3


The Committee discussed whether the Hampton Roads Transportation Fund (HRTF) Administrative Fees of roughly $550,000 incurred thus far, should be included in the HRTAC proposed budget. Chair Wagner replied that the fees cover the administrative costs of the Department of Motor Vehicles (DMV) and the Department of Taxation for collecting the fees and taxes and accounting for them properly. Mr. Tom Inglima, HRTAC Counsel, stated the legislation provides for the administrative fees to be generated. Mr. Inglima noted the fees are not accounted for in the proposed budget since the fees are withdrawn before the funds are deposited. Deputy Secretary Grindly Johnson commented that the Administration would prefer the HRTAC have its own Executive Director. She noted that Secretary Layne will provide start-up funds for the HRTAC budget, if necessary. The Committee agreed the following two items would be forwarded to the HRTAC Retreat:

• Discussion – Separate HRTAC Executive Director or one Executive Director for HRPDC/HRTPO/HRTAC

• Presentation – Budget figures for the above options A question was raised regarding the Hampton Roads Transportation Fund (HRTF) and whether the State held the account. Deputy Secretary Johnson and Chair Wagner stated that the account is currently held by the State, but will eventually be held directly by the HRTAC. Mayor McKinley Price stated the Executive Director search by Springsted Incorporated is on hold until it is decided whether the HRTAC will have a separate Executive Director. New Business There was no new business. Next Meeting There was no discussion regarding the next HRTAC Finance Committee meeting. Adjournment Mayor William Sessoms Moved to adjourn the HRTAC Finance Committee; seconded by Mayor Price. The Motion Carried and the meeting was adjourned at 9:58 a.m.

Attachment 3

the Chair (Alan Krasnoffthe

HRTAC • 723 Woodlake Drive • Chesapeake, Virginia 23302 • 757.420.8300 • www.hrtac.org

Chair, Alan P. Krasnoff • Vice Chair, Frank W. Wagner

March 30, 2015

Memorandum #2015-03

TO: Senator Frank Wagner, HRTAC Finance Committee Chair Mayor W. Eugene Hunt, Jr., HRTAC Finance Committee Vice-Chair

BY: Camelia Ravanbakht, HRTPO Interim Executive Director

RE: HRTAC FY 2016 Draft Budget Attached to this memo is the FY 2016 Draft Budget, along with the Annualized FY 2015 Operating Budget.

The following assumptions were used in developing the FY 2016 Draft Budget:

Income: There was no income budgeted or received for FY 2015. The Anticipated Income column is what is expected to be transferred from the Hampton Roads Transportation Fund to cover FY 2015 Expenditures. Expenditures: The first column is the FY 2015 Budget approved on November 20, 2014. The second column is the Year-to-Date Actual Expenditures as of December 31, 2014. The third column is the expected Annualized Expenditures based on the first six months actual expenditures and upcoming events. The last column is the FY 2016 Draft Budget. The Executive Director Search Consultant is expected to be paid in FY 2015. In addition, below is a tentative schedule:

April 8, 2015 FY 2016 Draft Budget submitted to HRTAC Finance Committee April 16, 2015 FY 2016 Draft Budget submitted to the HRTAC April 16 – May 30 Public Comment Period May 13, 2015 Public Hearing June 18, 2015 HRTAC Adoption/Approval

CR/kg

Copy: Mayor Alan Krasnoff, HRTAC Chair

Attachment 5

DRAFT

3/31/2015

FY2016 Draft

Budget

Approved Actual Anticipated Proposed

Income: Budget Income Income IncomeIncome/HRTF Reimbursement $ 0 $ 0 440,400$ 1,088,232$

Total Income 0 0 440,400 1,088,232

Approved Actual Annualized ProposedExpenditures: Budget Expenditures Expenditures ExpendituresPersonnel ExpendituresReimbursement - HRTPO/HRPDC Support Staff 72,431$ 88,670$ 177,000$ 95,000$ HRTAC Staff 520,932 0 0 520,932

Personnel Subtotal 593,363 88,670 177,000 615,932 Professional Services:Audit Services 40,000 0 0 40,000 Bank Fees 3,500 0 0 3,500 Legal (non-project services) 140,000 122,177 210,000 180,000 Financial Advisors 200,000 0 0 179,000 Insurance (Officers & Directors, Liability) 15,000 0 1,200 3,000 Executive Director Search Consultant 25,000 0 25,000 0Recruiting - 0 0 5,000

Professional Subtotal 423,500 122,177 236,200 410,500 Technology/CommunicationComputer hardware and peripherals/maintenance 10,000 325 0 10,000 Website Consultant (Development & Hosting) 10,000 4,400 400 300

Technology/Communication Subtotal 20,000 4,725 400 10,300 Administrative ExpensesPublic Notices/Advertising 12,000 7,939 16,000 20,000 Office Space TBD 0 0 TBDOffice Supplies 2,000 0 0 2,000 Furniture 10,000 0 0 10,000 Printing/Copying 10,000 2,508 5,000 5,000 Dues/Subscriptions 2,000 0 0 2,000 Travel 8,000 243 500 5,000 Meeting Expenses 3,500 2,561 5,200 3,500 Postage Delivery 1,000 44 100 1,000 Professional Development 3,000 0 1 3,000

Administrative Expenses Subtotal 51,500 13,295 26,800 51,500

Total Expenditures 1,088,363$ 228,867$ 440,400$ 1,088,232$

Budget Balance 1,088,363$ 228,867$ $ 0 $ 0

Hampton Roads Transportation Accountability CommissionAnnualized FY2015 Operating Budget

Actual as of December 31, 2014

Attachment 5

April 1, 2015

HAMPTON ROADS TRANSPORTATION FUND FINANCIAL REPORT

VDOT provides the HRTPO staff with monthly financial reports relating to the HRTF including the following information:

• Revenue from sources as detailed by the collecting agency • Interest earnings • Expenditures reflecting both the program total as well as project totals • The current cash position/balance in the HRTF as well as forecasted cash

position/balance

Attached are the February 2015 financial reports. Based on the financial reports received to date from VDOT, the HRTPO staff has analyzed the data and prepared the attached reports and summaries:

Revenues Total Gross Revenues (as of February 28, 2015): $258,209,522

• State Sales and Use Tax : $190,293,147 • Local Fuels Tax : $66,876,817 • Interest : $1,039,558

Expenditures Total Expenditures: $2,142,716

• I-64 Peninsula Widening – Segment 1: $1,544,503 • Total Dept. of Tax Administrative Fees: $499,518 • Total DMV Administrative Fees: $98,695

Cash Balance Ending Cash Balance: $256,066,805 Encumbered Balance Balance of Encumbered: $137,119,136

• Allocation: $138,663,639 • Less Construction Expenditures: $1,544,503

Net Available Cash Ending Available Cash Balance: $118,947,669

Attachment 6

Prepared by Hampton Roads Transportation Planning Organization on 3/31/2015

Cummulative BalanceSales & Use Tax Fuel Tax Interest Total Construction Dept of Tax Admin Fee DMV Admin Fee Total 7/1/13 - 2/28/15

July 2013 - February 2014 68,086,543$ 22,601,056$ 57,889$ 90,745,488$ 490$ 378,315$ -$ 378,805$ 90,366,682$

March 2014 9,016,259 3,303,314 - 12,319,573 214,735 14,820 - 229,555 102,456,699

April 2014 9,799,746 3,360,946 132,803 13,293,495 379,882 23,497 - 403,379 115,346,815

May 2014 10,405,479 3,607,554 - 14,013,033 280,551 25,849 - 306,400 129,053,447

June 2014 10,560,742 4,470,621 - 15,031,363 211,582 1,874 98,695 312,151 143,772,659

July 2014 10,355,831 4,099,779 173,163 14,628,773 168,860 27,596 - 196,456 158,204,977

August 2014 10,701,965 4,372,700 - 15,074,665 73,019 - - 73,019 173,206,623

September 2014 10,869,389 4,353,336 - 15,222,725 60,089 12,510 - 72,599 188,356,749

October 2014 10,082,755 3,950,834 284,421 14,318,010 91,205 593 - 91,798 202,582,961

November 2014 9,933,770 3,590,415 - 13,524,185 39,547 11,378 - 50,925 216,056,221

December 2014 9,964,325 2,947,347 - 12,911,672 16,049 7,055 - 23,104 228,944,789

January 2015 11,849,200 3,561,879 391,282 15,802,361 23,415 - - 23,415 244,723,735

February 2015 8,667,143 2,657,036 - 11,324,180 (14,921) (3,969) - (18,890) 256,066,805

Total 12 Months 122,206,604$ 44,275,761$ 981,669$ 167,464,034$ 1,544,013$ 121,203$ 98,695$ 1,763,911$

Grand Totals 190,293,147$ 66,876,817$ 1,039,558$ 258,209,522$ 1,544,503$ 499,518$ 98,695$ 2,142,716$

Less Balance of Encumbered (137,119,136)$

Total Net Available 118,947,669$

Gross Revenue Expenditures

Hampton Roads Transportation Fund (HRTF)Total of Sales & Use and Fuels Taxes

Summary

Attachment 6

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HRTF Revenue

Sales & Use Tax Fuel Tax Interest Total

Attachment 6

Source: VDOT report "Revenues By Locality"Prepared by Hampton Roads Transportation Planning Organization on 3/31/2015

Locality Total YTD

FY2014 Previous FY2015 February2015

Total YTD FY2015 Total

Chesapeake 26,384,832$ 18,239,725$ 2,125,060$ 20,364,785$ 46,749,618$

Franklin 1,301,603 922,481 103,273 1,025,753 2,327,356

Hampton 10,762,980 7,509,523 860,633 8,370,156 19,133,137

Isle of Wight 2,492,326 1,733,442 180,380 1,913,822 4,406,149

James City 6,470,044 4,449,614 452,795 4,902,408 11,372,453

Newport News 15,547,215 10,454,427 1,209,313 11,663,739 27,210,954

Norfolk 20,325,343 13,671,736 1,567,449 15,239,185 35,564,529

Poquoson 375,230 280,695 29,841 310,536 685,766

Portsmouth 5,194,137 3,489,374 464,848 3,954,222 9,148,359

Southampton 729,265 548,957 62,700 611,657 1,340,921

Suffolk 6,807,264 4,775,234 560,922 5,336,156 12,143,420

Virginia Beach 38,819,376 27,563,112 2,996,286 30,559,398 69,378,774

Williamsburg 3,245,330 2,281,481 214,855 2,496,336 5,741,666

York 6,757,314 4,713,724 495,824 5,209,548 11,966,862

Total 145,212,261$ 100,633,524$ 11,324,179$ 111,957,703$ 257,169,964$

Interest 363,855 675,703 - 675,703 1,039,558

Total Revenues 145,576,116$ 101,309,227$ 11,324,179$ 112,633,406$ 258,209,522$

Construction (1,087,241) (472,183) 14,921 (457,262) (1,544,503)

Dept of Tax Admin Fees (444,356) (59,131) 3,969 (55,162) (499,518)

DMV Admin Fees (98,695) - - - (98,695)

Cash Balance 143,945,823$ 100,777,913$ 11,343,069$ 112,120,982$ 256,066,805$

Less Balance of Encumbered (137,119,136)

Net Available Cash 118,947,669$

Forecast 157,892,682 95,103,920 13,557,329 108,661,249 266,553,931 Total Revenue - Forecast (under)/over (12,316,566) 6,205,307 (2,233,150) 3,972,157 (8,344,409)

Table 1 - Total HRTF Revenues

Total of Sales & Use and Fuels TaxesFiscal Year 2015

Hampton Roads Transportation Fund (HRTF)

Attachment 6


LocalityTotal YTD



Chesapeake 19,315,636$ 13,054,791$ 1,598,828$ 14,653,620$ 33,969,255$

Franklin 846,797 547,918 66,841 614,758 1,461,555 Hampton 7,985,894 5,383,458 667,606 6,051,064 14,036,958 Isle of Wight 1,218,689 817,663 96,591 914,254 2,132,943

James City 5,509,551 3,870,644 400,616 4,271,260 9,780,811

Newport News 11,915,523 7,869,425 948,761 8,818,185 20,733,708

Norfolk 16,077,088 10,730,902 1,281,071 12,011,973 28,089,061

Poquoson 245,914 176,790 20,801 197,591 443,504

Portsmouth 3,509,158 2,349,403 351,706 2,701,109 6,210,267

Southampton 289,155 198,141 19,845 217,985 507,141

Suffolk 4,215,063 2,917,138 370,403 3,287,541 7,502,604

Virginia Beach 29,412,313 20,698,987 2,317,368 23,016,354 52,428,668

Williamsburg 2,420,298 1,762,326 148,195 1,910,521 4,330,819

York 4,907,692 3,379,650 378,511 3,758,162 8,665,853

Total 107,868,770 73,757,234$ 8,667,143$ 82,424,377$ 190,293,147$

Updated Forecast 108,971,040 71,082,238 9,720,325 80,802,563 189,773,603 Diff(under)/over (1,102,270) 2,674,996 (1,053,182) 1,621,814 519,544

Table 1A - State Sales & Use TaxHampton Roads Transportation Fund (HRTF)

State Sales & Use TaxFiscal Year 2015

Attachment 6


LocalityTotal YTD



Chesapeake 7,069,197$ 5,184,934$ 526,232$ 5,711,166$ 12,780,363$

Franklin 454,806 374,563 36,432 410,995 865,801

Hampton 2,777,086 2,126,066 193,027 2,319,093 5,096,178

Isle of Wight 1,273,638 915,779 83,789 999,568 2,273,206

James City 960,493 578,969 52,179 631,148 1,591,642

Newport News 3,631,692 2,585,002 260,552 2,845,554 6,477,246

Norfolk 4,248,256 2,940,834 286,378 3,227,212 7,475,468

Poquoson 129,316 103,905 9,040 112,945 242,261

Portsmouth 1,684,979 1,139,971 113,142 1,253,113 2,938,092

Southampton 440,110 350,816 42,855 393,671 833,781

Suffolk 2,592,201 1,858,096 190,518 2,048,614 4,640,816

Virginia Beach 9,407,063 6,864,125 678,918 7,543,044 16,950,106

Williamsburg 825,033 519,155 66,660 585,815 1,410,848

York 1,849,622 1,334,074 117,312 1,451,386 3,301,009

Total 37,343,491 26,876,290$ 2,657,036$ 29,533,326$ 66,876,817$

Updated Forecast 48,700,001 23,638,439 3,837,004 27,475,443 76,175,444 Diff(under)/over (11,356,510) 3,237,851 (1,179,968) 2,057,883 (9,298,627)

Table 1B - Local Fuels TaxHampton Roads Transportation Fund (HRTF)

Local Fuels TaxFiscal Year 2015

Attachment 6

Source: VDOT report "Regional Portion of Sales Tax"Prepared by Hampton Roads Transportation Planning Organization on 3/31/2015

LocalityTotal YTD



Chesapeake 79,134 10,468$ (732)$ 9,736$ 88,870$

Franklin 3,411 437 (31) 406 3,817

Hampton 32,695 4,321 (306) 4,016 36,711

Isle of Wight 5,152 622 (44) 577 5,729

James City 24,315 3,074 (183) 2,890 27,205

Newport News 48,897 6,185 (435) 5,751 54,648

Norfolk 66,002 8,639 (587) 8,052 74,054

Poquoson 989 141 (10) 131 1,120

Portsmouth 14,012 1,896 (161) 1,735 15,747

Southampton 1,215 160 (9) 151 1,366

Suffolk 17,148 2,324 (170) 2,154 19,302

Virginia Beach 121,231 16,714 (1,061) 15,653 136,884

Williamsburg 10,083 1,433 (68) 1,365 11,448

York 20,071 2,719 (173) 2,546 22,617

Total 444,356 59,131$ (3,969)$ 55,162$ 499,518$

% of Sales & Use Tax Revenue 0.41% 0.08% -0.05% 0.07% 0.26% 1 Correcting error made in December 2014.

Hampton Roads Transportation Fund (HRTF)Administrative Fee

Fiscal Year 2015

Attachment 6

Source: VDOT report "Regional Portion of Sales Tax"Prepared by Hampton Roads Transportation Planning Organization on 3/31/2015

LocalityTotal YTD



Chesapeake 18,260 -$ -$ -$ 18,260$

Franklin 1,255 - - - 1,255

Hampton 7,781 - - - 7,781

Isle of Wight 3,305 - - - 3,305

James City 2,869 - - - 2,869

Newport News 9,844 - - - 9,844

Norfolk 10,866 - - - 10,866

Poquoson 275 - - - 275

Portsmouth 4,957 - - - 4,957

Southampton 1,212 - - - 1,212

Suffolk 7,249 - - - 7,249

Virginia Beach 24,312 - - - 24,312

Williamsburg 1,616 - - - 1,616

York 4,895 - - - 4,895

Total 98,695 -$ -$ -$ 98,695$

% of Fuel Tax Revenues 0.26% 0.00% 0.00% 0.00% 0.15%

Table 2B - DMV Administrative FeeHampton Roads Transportation Fund (HRTF)

Administrative FeeFiscal Year 2015

Attachment 6

Prepared by Hampton Roads Transportation Planning Organization on 3/31/2015

ProjectTotal YTD



I-64 Peninsula Segment 1 44,000,000$ -$ - - 44,000,000

I-64/264 Interchange Improvements 54,592,576 - 54,592,576 54,592,576

(PE/ROW Acquistion) 15,071,063 - 15,071,063 15,071,063

Third Crossing (Environmental SEIS) 5,000,000 - 5,000,000 5,000,000

I-64 Southside/High-Rise Bridge (PE) 20,000,000 - 20,000,000 20,000,000

Total 44,000,000$ 94,663,639$ - 94,663,639 138,663,639

Table 3 - AllocationsHampton Roads Transportation Fund (HRTF)

AllocationsFiscal Year 2015

Attachment 6

Source: VDOT report "All Project Costs"Prepared by Hampton Roads Transportation Planning Organization on 3/31/2015

ProjectTotal YTD



I-64 Peninsula Segment 1 1,087,241$ 472,183$ (14,921)$ 457,262$ 1,544,503$

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

Total 1,087,241$ 472,183$ (14,921)$ 457,262$ 1,544,503$

1 Correcting error made in January 2015.

Table 4 - ExpendituresHampton Roads Transportation Fund (HRTF)

ExpendituresFiscal Year 2015

Attachment 6

hampton roads transportation accountability … finance...new business 8. next meeting adjournment...

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